The European Union is discussing further a Sustainable Investment Facility Agreement (SIFA) with Egypt, EU Ambassador to Egypt Angelina Eichhorst said during the Union for the Mediterranean (UfM) Economic Forum in Cairo.
Speaking at the forum, Eichhorst said Egypt was making progress in attracting EU investors and strengthening its trade and investment ties with the bloc. However, she identified trade barriers and multiple layers of decision-making as persistent challenges.
Eichhorst said the EU accounted for 42% of exports from the Mediterranean region to the bloc, describing the share as significant but insufficient. She also acknowledged concerns among Egypt and other regional partners over imbalances in trade relations.
She said the EU sought to invest in its Mediterranean partners to help create the conditions needed to attract further investment, generate jobs and strengthen trade flows, including both exports to and imports from the bloc.
The ambassador also stressed the importance of involving young people in economic consultations and decision-making. She noted that young Egyptians had ideas for small and medium-sized enterprises (SMEs) and start-ups, emphasising the need to create an environment in which these businesses could grow and thrive.
On investment financing, Eichhorst said public funding was declining, underscoring the need for greater participation by private investors. She added that regulatory frameworks should be designed to improve conditions for people across the region.
Eichhorst also highlighted the need for deeper regional integration, noting that the Mediterranean remained one of the world’s least integrated regions in terms of trade and investment.
SIFAs provide practical measures to attract FDI, namely by increasing the transparency of investment-related measures and streamlining the day-to-day administrative procedures.